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Michael Nuanes

Managing Broker, Principal at Business Brokerage Services

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Compete on Execution, Not Commission | Business Brokerage Services

Business Brokers: Stop Competing on Commission — Start Competing on Execution

In the brokerage industry, one of the most common competitive traps is fee compression.
A seller interviews multiple brokers.
One firm says 10%.
Another says 8%.
Another says 6%.
And suddenly the conversation is about commission — not capability.
At Business Brokerage Services, LLC (BBS), we believe this is the wrong battlefield.
If a brokerage firm’s primary differentiator is lower fees, it is signaling something dangerous: a lack of structural advantage.
The firms that close more deals consistently do not compete on commission.
They compete on execution.

The Commission Race to the Bottom
Across Colorado and nationally, many brokerage firms operate on a volume model:
Secure more listings
Lower fees to win engagement
Rely on marketing exposure
Hope the deal survives diligence
The problem?
Lower fees do not solve post-LOI fragility.
And post-LOI is where most deals are lost.

Where Competitor Models Often Struggle
Without naming specific firms, recurring industry weaknesses include:
No defined transaction department
Informal diligence tracking
Reactive lease coordination
Licensing handled late
Broker-overload bottlenecks
Minimal structured closing oversight
In many firms, the same broker:
Wins the listing
Markets the deal
Negotiates the LOI
Manages diligence
Coordinates with lenders
Negotiates lease assignments
Oversees closing
That model depends entirely on individual bandwidth.
Bandwidth is not scalable.

The BBS Differentiator: Infrastructure Over Personality
Business Brokerage Services is built around structure — not just individual brokers.
Our model includes:
Director-level oversight of client relations
Dedicated transaction and licensing coordination
Structured milestone tracking
Organized deal rooms
Defined accountability at every stage
System-based communication tracking
This allows brokers to focus on high-value tasks:
Negotiation
Strategy
Relationship management
Deal positioning
Execution runs on a structured system.

Why Execution Is a Stronger Selling Point Than Fee Discounts
When sellers compare brokers, the smarter question is not:
“What is your commission?”
It is:
“What happens after the LOI?”
At BBS, we can answer with clarity:
Who manages diligence timelines
Who coordinates landlord approvals
Who tracks licensing requirements
Who communicates with lenders
Who controls milestone sequencing
Specific answers build confidence.
Confidence reduces renegotiation risk.
Reduced risk preserves value.

What Business Brokers Can Learn From This
If you are a broker reading this, consider:
Are you lowering fees to win listings?
Or are you strengthening structure to win closings?
The brokerage firms that thrive long-term:
Invest in transaction systems
Define internal roles
Segment responsibilities
Use technology for execution—not just marketing
Track milestones formally
Control communication channels
Growth comes from predictability.
Predictability comes from process.

Why Colorado Is Increasingly a Process Market
Colorado business transactions are becoming more complex:
Increased regulatory oversight
Greater lender scrutiny
Tighter landlord requirements
More sophisticated buyers
Without structured coordination, transactions stall.
With structured oversight, transactions move with control.
BBS operates within this modern brokerage model.

The Strategic Advantage You Can Sell
If you are competing against firms that:
Emphasize brand size
Compete on commission
Market aggressively but manage loosely
Your advantage should be:
Defined transaction infrastructure
Licensing sequencing expertise
Structured post-LOI execution
Dedicated coordination support
Execution is harder to copy than marketing.
Structure is harder to replicate than a fee discount.

Final Thought
Commission is a commodity.
Execution is a competitive advantage.
Listings create opportunity.
Infrastructure closes deals.
At Business Brokerage Services, LLC, we choose to compete on structure, accountability, and transaction control — because those are the factors that determine whether a deal survives beyond the LOI.
If you are a business owner evaluating brokers — or a broker evaluating your own model — the question is simple:
Are you competing on price…
or on performance?

Business Brokerage Services, LLC
Serving business owners and brokers across Colorado
https://denverbbs.com

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